In today’s investor landscape, it is crucial for Asset Managers to be cognizant of and prepared for Operational Due Diligence requests.

In a recent webinar, we heard from ODD experts from Eze Castle Integration and Eisner Amper to learn about the current environment for Asset Managers. Their insights into the ODD process include:

Preparing for the ODD Process

A great practice is any question that you have answered on a DDQ [anything that requires additional or backup info] – be sure to have them prepared in two ways: a hard copy during meeting and soft copy for deliverable for post meeting

Organizational charts, or anything illustrative makes for a great deliverable

Top 3 Operational Process Observed in ODD

Cash Management Flows & Controls

Valuation

Fund Accounting

Top 3 Qualifying Technology Topics in ODD

Business Continuity and Disaster Recovery

IT Infrastructure

Cybersecurity

Red Flags for Investors

Lack of trust

Lack of independent oversight

Unwillingness to provide transparency

Insufficient checks and balances

Unsatisfactory service provider engagement

Investor’s IT Expectations

Disaster Recovery and Business Continuity Planning

IT Security Policies & Access Controls

Audits, Assessments & Certifications

Policies, Plans & Procedures + Employee Training

Vendor Risk Management

Systems, Network & Infrastructure Overview

Get more insight into these ODD observations by listening to the full 35-minute replay here or below.